Utilities included in the rent

[Eric Schrader]

So I have been looking at a 6-plex for purchase.  It has 5 of the 6 units rented. Couple of questions, do i include the empty unit's rent in the GIS calculation?  How do i address the heat & water included in the rent in my calculation?

Total annual income $51.6k  (5 units rented, current state of the property)

subtract : Taxes ($5842), Heat ($4052), water ($1755), insurance (1808), Trash ($870), maint (2100), lead insp (450), vacancy (10%, $5100).  total 21,977

NOI = 29.6k I need to get the multiplier, but assuming 10% you have a value of 296,000. They are asking 439k

Am i way off base?